Citigroup is making a major shift in its IT workforce strategy, slashing its reliance on external contractors while ramping up full-time tech hiring. The bank currently relies on contractors for about 50% of its IT workforce but plans to cut that down to just 20%. This comes as Citigroup faces regulatory scrutiny over data governance and internal controls. To make up for the reduction, the bank plans to hire thousands of employees, growing its technology workforce to around 50,000 from its current 48,000. "Citi is growing our internal technology capabilities to support our strategy to improve safety and soundness, enable revenue growth and drive efficiencies," Citi said in a statement to Reuters. While the exact timeline for these changes is unclear, this move signals a broader effort to strengthen internal oversight and control over critical IT functions.

Key Points:

• IT Workforce Shift: Citigroup plans to reduce IT contractors from 50% to 20% of its workforce.
• Hiring Surge: To compensate, Citi will expand its internal IT staff to 50,000 employees (up from 48,000 in 2024).
• Regulatory Pressure: The move aligns with efforts to address data governance and internal control issues, which have drawn regulatory attention.
• Strategic Focus: Citi aims to improve safety, efficiency, and revenue growth by internalizing more of its tech operations.
• No Clear Timeline: The internal presentation did not specify how quickly these changes will take place.

Citigroup’s decision reflects a broader trend where major financial institutions prioritize in-house capabilities to maintain regulatory compliance and tighter security controls over critical IT systems. Will this mark a shift away from heavy contractor reliance in the banking industry? Only time will tell!
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